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The Washington Merry-Go-R ound TtLK WASHINGTON POST Friday. May 33, 1m -p 

New Peace Corps Chief Had CIA Ties 

By Drew Pearson 

and Jack Anderson 

The late President Kenne- 
dy’s orders to keep the Peace 
Corps free of any CIA taint 

standing volunteer work in 
Venezuela, Brazil and Argen- 
tina. However, it has received 
indirect CIA financing 
through the»,Donner Fouxida- 
4j on and the Free Labor Com- 

have been quietly abandoned. , ** ; 

The new Peace finre. h* n H also & ot ® Contribu- 

The new Peace Corps head 
dynamic, 34-year-old Joe 
fccd, came to the Nixon 
istration from Accion, a 
volunteer organizafRWT^fhat 
has accepted money from at 
least two CIA fronts. 

President Kennedy was so 
determined to disassociate the 
Peace Corps from the Central 
Intelligence Agency that he 
gave strict instructions to (hi s 
CIA chief, John McCone, and 
Peace Corps director, Sargent 
Shriver, to permit no liaison 
between the two agencies. 

Carrying out these instruc- 
tions, Shriver issued specific 
orders in 1962 to all his coun- 
try directors in Latin America 
not to associate with anyone 
from Accion, because it was 
operating with the guidance of 
the CIA. 

Now Accion’s former execu- 
tive director (has been put in 
charge of the Peace Corps. 

Blatchford was recom- 
mended by Pepsi Cola presi- 
dent Qoa.Kfindnll. Who is pres- 
ident of Accion. It was largely 
Kendall who persuaded one of 
Wall Street’s most distin- 
guished law firms in 1963 to 
accept Richard Nixon as sen- 
ior partner. Thereafter, Nixon 
traveled around the world 
representing Pepsi Cola. 

Accion has done some out- 

tion for Accion from the 
Nixon law firm and appointed 
Nixon’s law partner, i yr[ij/ *n 
Rose, to Accion’s board of 

who re- 
placed Blatchford as Accion’s 
executive director, admitted to 
this column that Accion has 
received $50,000 from the 
Donner Foundation. 

“We would accept another 
donation,” he added. “No one 
has said or done anything to 
convince me that the Donner 
Foundation did not act with 
Accion’s best interests in 
mind. I believe the correct 
theory behind Shriver's orders 
for Peace Corps volunteers 
not to meet with members of 
Accion was to insure that Ac- 
cion did not become a threat 
to the Peace Corps. I think 
Shriver was looking out for 
his own skin.” 

The president of the Donner 
Foundation, incidentally, is 
Fra^Jab m q, a former 

Note: Despite the CIA taint, 
Blatchford is highly regarded 
as an able, aggressive adminis- 

ities in the Cheyenne helicop- 
ter program, the Army can 
celed its contract with Lock- 
heed for the production of the 
combat helicopters. Lockheed 
stands to lose $900 million in 
production profits. 

We reported that Rep. 
Mendel Rivers, the czar of the 
House Armed Services Com- 
mittee, blocked an investiga- 
tion into the Cheyenne pro- 
gram last year. Earlier, Lock- 
heed had helped erect a 
monument to Rivers in North 
Charleston, S.C. 

New York’s Rep. Otis Pike 
asked Rivers to investigate the 
skyrocketing Cheyenne costs 
a year ago. He cited the fact 
that an Army document, re- 
lated to the Cheyenne con- 
tract, was signed by former 
Assistant Army Secretary Wil- 
lis Hawkins, who came to the 
Pentagon from Lockheed and 
later returned to his same 
desk at Lockheed. 

Canceled Contract 

Less than two weeks after 
this column exposed Lrregular- 

“So that is the situation, 
declared Rivers with finality, 
“Now, at least we got the 

When Pike raised his objec- 
tions to the Cheyenne on. the 
House floor, Rivers had! 
Speaker John McCormack’ 
step down from the rostrum :t£ 
settle the matter. 

’Where tJhe national interest 
of our country is concerned,” 
intoned the Speaker, “if I am’ 
going to err in judgment, F 
would rather err on the side 
of strength . . .1 am willing 
to follow the leadership of the 
gentleman from South Caro- 
lina (Rivers).” • 1 

But Rivers, who has favored 
Lockheed in other backstage 
negotiations at the Pentagon, 
refused to listen- to Pike. 

“I was elected to run this 
Committee; I will handle it,” 
Rivers snapped. “So I did han- 
dle it, and I called in my chief 
counsel, I called in Mr. Bates 
(Massachusetts Congressman 
William Bates, senior Republi- 
can on the Committee) . . . 
We handled it, and there 
wasn’t any investigation.” 

“Right," said Pike wearily. 

On previous occasions, Mc- 
Cormack has joked that (he 
and Rivers have their own pri- 
vate political party with a 
membership of two. 

It now looks as if Rivers and 
McCormack were really pro- 
tecting the interests of Lock- 
heed, not of the country. 

Note: The snow-maned Riv- 
ers and his chief counsel, Russ 
Blandford, run the Armed 
Services Committee in an ar- 
bitrary and arrogant manner. 
They make the multi-billion- 
dollar weapons decisions after 
mere token consultation with 
the membership. At hearings, 
other members are given only 
five minutes to question wit- 
nesses. Rivers keeps an alarm 
clock on the rostrum to let 
him know when the five min- 
utes are up. 

© 1969. Bell-McClure Syndicate. Ina